Deduction for tools (tradespersons)

If you were a tradesperson in 2017, use the following formula to calculate your maximum tradesperson's tools deduction for the cost of eligible tools you bought in 2017:

Maximum deduction for eligible tools is the lesser of:

a) $500; and

b) the amount, if any, determined by the formula

A − $1,178 where

A = the lesser of:

1. the total cost of eligible tools that you bought in 2017; and

2. your income from employment as a tradesperson for the year

plus the amount you received in 2017 under the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant programs;

minus the amount of any Apprenticeship Incentive Grant and Apprenticeship Completion Grant overpayments that you had to repay in 2017.

Example

In 2017, Karsten is employed as an electrician with ABC Company, and he needs to purchase additional tools for his job. He paid $2,500 for the tools he needed and he earned $45,000 in employment income in 2017 as an electrician.

He calculates his maximum deduction for eligible tools in 2017 as follows:

Maximum deduction for eligible tools is the lesser of:

a) $500; and

b) the amount, if any, determined by the formula

A − $1,178 where

A = the lesser of:

1. $2,500; and

2. $45,000

Karsten's maximum deduction for 2017 is the lesser of $500 and $1,322 ($2,500 − $1,178). Karsten claims a deduction of $500 at line 229 of his 2017 income tax and benefit return.